Refer to Figure 15-7. Use the figure above to answer the following questions
a. What is the profit-maximizing quantity and what price will the monopolist charge?
b. What is the total revenue at the profit-maximizing output level?
c. What is the total cost at the profit-maximizing output level?
d. What is the profit?
e. What is the profit per unit (average profit) at the profit-maximizing output level?
f. If this industry was organized as a perfectly competitive industry, what would be the profit-maximizing price and quantity?
a. Quantity = 50; price = 32
b. Total revenue = 50 × $32 = $1,600
c. Total cost = 50 × $20 = $1,000
d. Profit = $1,600 - $1,000 = $600
e. Profit per unit = $32 - $20 = $12
f. If purely competitive, quantity = 80; price = $22
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